HTC forecasts third-quarter revenue will drop by 18-36%

TAIPEI--Taiwanese smartphone maker HTC Corp. (宏達電) on Thursday forecast third quarter revenues of just NT$42 billion (US$1.4 billion) to NT$47 billion, a decrease of 18-36 percent from the previous quarter.

The Taoyuan-based company said in a statement that its third-quarter gross profit margin is expected to land between 22.5 percent and 23 percent, with an estimated earnings per share (EPS) of NT$0.05 to NT$0.69.

HTC posted revenue of NT$65.1 billion in the April-June quarter, with gross profit margin of 22.2 percent and EPS of NT$2.74, which the company attributes to sales momentum of the HTC One M8, HTC One mini 2 and Desire 816 around the world.

The company said the One M8 has continued to do well in the United States, where it is available from all four major mobile carriers, while the One mini 2 has been well received in Europe. It did not give specific numbers.

Focusing on the good news of the second quarter, HTC's Chief Executive Officer Peter Chou (周永明) said: “As is demonstrated by this quarter's results, we have continued to improve all aspects of our business, while building on the incredible excitement around our current line of products.”